On 10 January 2020, former director and founder of the Kleenmaid group of companies, Andrew Eric Young, was found guilty in the District Court of Queensland on 19 charges arising from the collapse of the national white goods distributor.
Following a trial lasting 59 days, the jury found Mr Young guilty of:
one count of fraud by dishonestly gaining loan facilities from Westpac in November 2007 totalling $13 million;
two counts of criminal insolvent trading of debts of $3.5million relating to two additional loan facilities from Westpac in July 2008;
15 counts of criminal insolvent trading of debts amounting to more than $750,000 that were incurred during the period October 2008 to April 2009; and
a further count of fraud by dishonestly causing $330,000 to be removed from a Kleenmaid company bank account just prior to administrators being appointed and transferred to a bank account held by a company in which Mr Young held an interest and from which he and his wife would benefit from the payment.
The guilty verdict comes after similar court action against Kleenmaid directors Gary Collyer Armstrong, sentenced to five and a half years jail, and Bradley Wendell Young, sentenced to nine years imprisonment (16-257MR).
‘The action ASIC has taken against the former directors of Kleenmaid should send a clear message that where a director fails in their duty to prevent a company from incurring debts while it is insolvent, ASIC will take action, particularly where the director’s conduct has been dishonest and to the detriment of creditors and consumers,’ said ASIC Commissioner John Price.
Bail was refused and Mr Young was remanded in custody pending sentencing on 7 February 2020.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions after a referral from ASIC.
